Market Report: Laird pays the price for 'overblown' rise

The hype and hullabaloo ahead of Apple's iPhone 5 launch tomorrow has not spread to one of its suppliers – Laird. The company, which started life in 1824 as a shipbuilder in Birkenhead's docks but is now a high-tech electronics company that supplies smart phone makers, tumbled to the bottom of the FTSE 250.

Analysts at Goldman Sachs computed that its share price now looks "increasingly expensive with below-average returns."

Goldman's scribes yesterday downgraded it to sell with a share price target of 210p – down from 235p.

Laird's problem appears to be that the share price rise that followed its half-year results in July now looks overblown.

Laird's exposure to consumer electronics leaves it with a "weak score" in Goldman's eyes. Despite the success of its electromagnetic interference shielding which it sells to smartphone makers, Goldman's experts think its dependency on large consumer electronics and a poor track record of managing cash makes it a sell. Its shares dropped 10.1p to 230.5p.

The FTSE 100 reached 5,800 during the day, but fell again and ended close to where it had started, down 1.6 points to 5,793.2.

Miners led the pack as hopes for further stimulus in China and the US pushed them higher.

The long-awaited Glenstrata merger helped Xstrata, up 12.5p to 1026.5p, while commodities trader Glencore fell 8.05p to 370p after it submitted its revised $36bn (£22bn) takeover bid.

But Australia's mining sector was hit by news that BHP Billiton and Xstrata are cutting high-cost coal production in the country due to weak prices and rising costs. BHP Billiton shed 4p to 1,910p.

Idle traders let old takeover rumours rumble on, and the persistent, but much-doubted speculation that retailer Marks & Spencer could be subject to a takeover bid accompanied a share price rise of 9.9p to 371.1p.

Online gaming group bwin.party regained some of the falls of the previous week and was up 7.5p to 103.7p.

Have the wheels come off at Chariot Oil & Gas?

Question arose yesterday after the Aim-listed, Africa-focused oil and gas group admitted it has found yet another dry well.

Punters in the stock must have strong stomachs – a high-risk strategy has not always paid off.

The group's shares saw almost half of their value disappear in May when the company announced that its Tapir South exploration well off the Namibian coast was dry.

In its latest announcement yesterday, Chariot said its Kabeljou exploration well, its last drilling programme this year, found "no commercial hydrocarbons" and the company has therefore plugged and abandoned it.

Last week the shares slumped when fears about the results at the Kabeljou well emerged. The company was forced to issue a statement to say the results were "not yet known".

Despite the huge setback, Chariot's chief executive Paul Welch, said: "The fact that we encountered source rock within this well is important.

"The Nimrod prospect was our largest target in the south but there are still other areas of interest in this licence.

"We will be discussing these findings and the next steps with our partners, Petrobras and BP, and will update the market with plans in due course."

The company's shares plunged by 66 per cent – down 65.25p to 33p.

Meanwhile, Tullow Oil stumbled on news that it had found gas not oil at a well off the coast of Kenya.

It said the ongoing drilling remains on course to "test for any deeper oil potential within this gas prone region." Its shares lost 18p to 1,386p.

UK Coal gave some guidance on its proposed restructuring yesterday afternoon and its shares moved up 2.58p to 6.58p. It said that its proposed restructuring is on track to be completed by the end of the year.

On Aim, Coal of Africa, a stock that has had vague whispers of bid talk surround it earlier this month, gained 2p to 20p.

The FTSE 100 quarterly review is set for tomorrow. A slowdown in trading in the City of London is to blame for the likely relegation of City broker Icap. Its shares fell by 1.5p to 343.4p ahead of the company's likely demotion to the FTSE 250.

FTSE 100 Risers

Kazakhmys 686.5p (up 29p, 4.41 per cent) The copper miner was boosted by a note from analysts at UBS who raised their share price target to buy, up from sell. Miners have enjoyed a strong run on the back of hopes of further stimulus in China and the US.

Barclays 207.75p (up 1.35p, 0.65 per cent) Broker Investec banked on Barclays and gave the stock a target price of 240p.

FTSE 100 Fallers

Associated British Foods 1,280p (down 26p, 1.99 per cent) Despite a good set of results for retailer Primark, the sugar-to-clothes group was hit by problems at an Australian meat factory and highlighted a £100m non-cash charge for the business.

Unilever 2,245p (down 30p, 1.32 per cent) Broker Nomura expects the consumer goods giant to suffer from rising food prices this year.

FTSE 250 Risers

Spirax Sarco 2,126p (up 91p, 4.47 per cent) Goldman Sachs analysts raised their recommendation of the engineering group to buy, up from neutral, and raised their share price target to 2,510p, up from 2,100p.

Ferrexpo 196.5p (up 13.7p, 7.49 per cent) The iron ore miner was boosted by a note from scribes at UBS who raised their target price for the stock to 410p, up from 370p, and rated it a buy.

FTSE 250 Fallers

Premier Farnell 185.4p (down 5.3p, 2.78 per cent) Analysts at Canaccord Genuity issued a hold rating and gave the electronics supplier a share target price of 225p. Its second-quarter trading update is on Thursday.

Premier Oil 376.9p (down 10.5p, 2.71 per cent) Analysts at Liberum Capital switched their rating from hold to sell for the explorer and gave it a share price target of 320p.

News
i100
News
people Emma Watson addresses celebrity nude photo leak
News
Katie Hopkins appearing on 'This Morning' after she purposefully put on 4 stone.
peopleKatie Hopkins breaks down in tears over weight gain challenge
News
peopleHis band Survivor was due to resume touring this month
PROMOTED VIDEO
Arts and Entertainment
Robert De Niro, Martin Scorsese and DiCaprio, at an awards show in 2010
filmsAll just to promote a new casino
News
i100
News
In this photo illustration a school student eats a hamburger as part of his lunch which was brought from a fast food shop near his school, on October 5, 2005 in London, England. The British government has announced plans to remove junk food from school lunches. From September 2006, food that is high in fat, sugar or salt will be banned from meals and removed from vending machines in schools across England. The move comes in response to a campaign by celebrity TV chef Jamie Oliver to improve school meals.
science
News
people'It can last and it's terrifying'
Arts and Entertainment
tv
Life and Style
fashionModel of the moment shoots for first time with catwalk veteran
News
ebooksAn unforgettable anthology of contemporary reportage
News
i100
Sport
Tom Cleverley
footballLoan move comes 17 hours after close of transfer window
Sport
Alexis Sanchez, Radamel Falcao, Diego Costa and Mario Balotelli
footballRadamel Falcao and Diego Costa head record £835m influx
Life and Style
fashionAngelina Jolie's wedding dressed revealed
News
Boris Johnson may be manoeuvring to succeed David Cameron
i100
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

C++ Quant Developer

£700 per day: Harrington Starr: Quantitative Developer C++, Python, STL, R, PD...

Java/Calypso Developer

£700 per day: Harrington Starr: Java/Calypso Developer Java, Calypso, J2EE, J...

SQL Developer

£500 per day: Harrington Starr: SQL Developer SQL, C#, Stored Procedures, MDX...

C#.NET Developer

£500 per day: Harrington Starr: C#.NET Developer C#, WPF, WCF, ASP.NET, Prism...

Day In a Page

Stolen youth: Younger blood can reverse many of the effects of ageing

Stolen youth

Younger blood can reverse many of the effects of ageing
Bob Willoughby: Hollywood's first behind the scenes photographer

Bob Willoughby: The reel deal

He was the photographer who brought documentary photojournalism to Hollywood, changing the way film stars would be portrayed for ever
Angelina Jolie's wedding dress: made by Versace, designed by her children

Made by Versace, designed by her children

Angelina Jolie's wedding dressed revealed
Anyone for pulled chicken?

Pulling chicks

Pulled pork has gone from being a US barbecue secret to a regular on supermarket shelves. Now KFC is trying to tempt us with a chicken version
'I’ll tell you what I would not serve - lamb and potatoes': US ambassador hits out at stodgy British food served at diplomatic dinners

'I’ll tell you what I would not serve - lamb and potatoes'

US ambassador hits out at stodgy British food
Radio Times female powerlist: A 'revolution' in TV gender roles

A 'revolution' in TV gender roles

Inside the Radio Times female powerlist
Endgame: James Frey's literary treasure hunt

James Frey's literary treasure hunt

Riddling trilogy could net you $3m
Fitbit: Because the tingle feels so good

Fitbit: Because the tingle feels so good

What David Sedaris learnt about the world from his fitness tracker
Saudis risk new Muslim division with proposal to move Mohamed’s tomb

Saudis risk new Muslim division with proposal to move Mohamed’s tomb

Second-holiest site in Islam attracts millions of pilgrims each year
Alexander Fury: The designer names to look for at fashion week this season

The big names to look for this fashion week

This week, designers begin to show their spring 2015 collections in New York
Will Self: 'I like Orwell's writing as much as the next talented mediocrity'

'I like Orwell's writing as much as the next talented mediocrity'

Will Self takes aim at Orwell's rules for writing plain English
Meet Afghanistan's middle-class paint-ballers

Meet Afghanistan's middle-class paint-ballers

Toy guns proving a popular diversion in a country flooded with the real thing
Al Pacino wows Venice

Al Pacino wows Venice

Ham among the brilliance as actor premieres two films at festival
Neil Lawson Baker interview: ‘I’ve gained so much from art. It’s only right to give something back’.

Neil Lawson Baker interview

‘I’ve gained so much from art. It’s only right to give something back’.
The other Mugabe who is lining up for the Zimbabwean presidency

The other Mugabe who is lining up for the Zimbabwean presidency

Wife of President Robert Mugabe appears to have her sights set on succeeding her husband